How to import Ethiopian Coffee – 10 steps to success!

Ethiopian Arabica coffee is considered to be among the best coffees in the world. Ethiopia is currently the largest African producer of Arabica coffee and has more than 400 active coffee exporters. The major importers of Ethiopian coffee are Germany (22% of total exports), Saudi Arabia (16%), the United States of America (11%), Japan (10%), Belgium (7%), Sudan (6%) and Italy (5%). Arabica coffee is Ethiopia’s primary export product.

Below are 10 steps to success for anyone who wants to know how to import Ethiopian coffee.

1. Understand the production styles and grading system

• Ethiopian coffee goes through either of these two production styles
  • Sun-dried natural
  • Washed
• The grading system used for coffee is as follows:
  • Each coffee is named according to its geographical origin
  • Grading is then done on a scale of 1 to 9
  • The coffee is then grouped into either of these 4 groups – commercial washed, commercial unwashed, specialty washed, and specialty unwashed.
  • The first name of the coffee refers to the larger region where the coffee was produced, and the letter after the name refers to the sub-region, e.g. Sidama ‘C’ or Jimma ‘A’.
  • Grade 1 or 2 coffee is referred to as specialty coffee, while grade 3 to 9 coffee is called commercial coffee.

2. Understand the buying system

• Anyone who wants to know how to import Ethiopian coffee must understand the buying system.
• The three main channels through which one can buy this commodity are:
  • Exporters – who purchase their coffee from the Ethiopian Commodities Exchange (ECX)
  • Cooperative unions – coffee from the different cooperatives in the country is channeled through the 4 cooperative unions for sale
  • Private estates – These individuals usually have their own export licenses, enabling them to sell and export directly to international buyers.

3. Understand how the Ethiopian Commodities Exchange (ECX) works

• The ECX incorporates a trading platform for coffee, as well as other commodities.
• This is a centralized and standardizing body where goods and futures are traded.
• When coffee enters the ECX, it is immediately given a grade and geographical designation.
• After grading, the coffee is then stored in an ECX warehouse to avoid tampering. The coffee is then bid on and sold to the exporters.
• Note that coffee produced by the cooperatives and private estates does not have to go through the ECX. These bodies are allowed to sell directly to the international market.

4. Confirm the quality of the coffee using samples provided

• Several samples of coffee are given to the importer to look at before the final deal is concluded. These are:
  • First sample
  • Second sample
  • Pre-shipment sample
  • Final pre-shipment sample

5. Get the right information about the coffee

• Information is very important when ordering Ethiopian coffee because it helps you to see exactly what you are buying and to know whether or not it is what you wanted to buy.
• Examples of the details to look out for are grade, region, processing style, community, and farmer information.
• If you are buying coffee from a cooperative union or a private estate, ensure that you receive all the relevant information about the coffee before you make your final decision.

6. Use a reliable agent

• Get an agent to act on your behalf, or on behalf of the buyer. The agent will act on behalf of the buyer during the purchasing process.
• The tasks carried out by that agent include collecting data about the coffee and its origin, inspecting the quality of the coffee, and clarifying the shipping details.

7. Conduct a physical inspection of the coffee lots

• After the exporter sends at least 2 pounds of the green beans to the agent, the location of the coffee lot is disclosed.
• The agent then organizes a physical inspection of the coffee lot, to determine whether the samples provided so far correspond to what is in there.

8. Compare the samples, and organize for Q-grading and cupping

• Once the physical inspection has been carried out, the next step is to compare the flavor profiles and physical bean quality of the first and second samples.
• The buyer or the buyer’s agent performs cupping and grading of each sample to verify the characteristics of the coffee, after which the outcomes of the two samples are compared.
• If the purchasing process and preparation of the export take longer than expected, the buyer can request another sample from the coffee lot for cupping and grading, to make sure the quality has remained the same.
• For the Q-grading process, it is advisable to use a licensed Q-Grader to perform the task.

9. Sign an export sales contract only when everything is agreed on

• Signing a contract is important when considering how to import Ethiopian coffee, as the contract details all that has been agreed on by both parties.
• The contract should indicate the price, quality, and packaging of the coffee, as well as the shipping timeline. It should be signed by both parties after the final details are settled on, and the specifics of the coffee lot are confirmed.
• Note that the contract should allow for testing of a final pre-shipment sample if the process of preparing the shipment for export takes longer than expected.

10. Use an international freight forwarder

• After the contract is signed, and the transaction completed the coffee is then transported to Djibouti for shipment.
• At this point, the buyer must make sure that the coffee is being shipped using an international freight forwarder. An international freight forwarder handles all the required documentation, has more experience in moving such cargo, and can guarantee the arrival date of the shipment.

With the 10 tips for success listed above, you will have no problem figuring out how to import Ethiopian coffee. All the best!